UNIVERSITY OF ESSEX DEPARTMENT OF ECONOMICS
SESSION 2022–23
EC203 Technological Change: past, present, and future prospects
Assignment – Term Paper
The assignment must be submitted no later than 12:00 on Friday 05 May 2023 via FASER
(the University’s online coursework submission facility). You are welcome to submit
assignments before the deadline but any submission after the deadline is subject to the
University’s procedures. The submitted file should not be watermarked, and no paper copy
should be submitted.
Late Submission, Extenuating Circumstances and Academic Offences: You must comply
with the University’s procedures (available online – search for Exams and Coursework).
Resources: guidance is provided to support your preparation assignments at the EC203 website.
It is very important that you comply with the guidance provided for EC203 assignment
essays (otherwise you will be disappointed with the mark you obtain).
EC203-5-SP: If you are a second-year student answer ONE of the following questions in a
term paper of at most 3,000 words.
1. Identify the main advances in the understanding of electricity and associated
innovations during the 19th century. Hence discuss what determined the subsequent
pattern and pace of innovations that were reliant on electricity in the first half of the
20th century.
Guidance:
Your paper should begin with a brief overview of the main developments in the
understanding of electricity from the early 1800s to the beginning of the 20th century.
Scientific details are not necessary except inasmuch that they are relevant for an
understanding of the subsequent economically significant innovations (which should be
your focus of attention). You should include, among other inventions, the duality
between the electric dynamo and electric motor, incandescent lighting, the “AC-DC
wars”, and the role of electricity in communications technologies (but not the
developments that followed later in the 20th century, e.g., radar, television, and digital
computing).
The second half of your paper should discuss the ways in which economic and
technical forces interacted to influence the various ways that electricity was applied up
to but not beyond the second world war. Central to this process were the forces that
governed the economic incentives to adopt the use of distributed electric motors in
factory production (as distinct from motive power provided by a centrally located
engine – often steam powered – that served to provide power to machinery through
systems of belts and pulleys). Your paper should also explore the timing of other
applications of electricity during this period, with an emphasis on the role of economic
forces in the adoption of the various applications.
Getting started references (details on EC203 Reading List):
Usselman, S. W. “From Novelty to Utility: George Westinghouse and the Business of
Innovation during the Age of Edison”, Business History Review, vol. 66,
Summer 1992, pp. 251-304.
Devine, W. D. “From Shafts to Wires: Historical Perspective on Electrification”,
Journal of Economic History, vol. 43, June 1983, pp. 347-372.
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2. Examine how and why governments in capitalist societies have sought to influence
innovation since the mid-19th century. In this context discuss the strengths and
weaknesses of patents as a tool for fostering innovation.
Guidance:
Your paper should approach the first part of the question by trying to construct
an integrated overview of the sorts of ways that governments have influenced
innovation, essentially since the time of the (first) Industrial Revolution (and to avoid
merely presenting a list of apparently unrelated points). In doing this, explore common
aspects of different policies, briefly comment on their effectiveness (or otherwise) and
identify potentially unintended outcomes or externalities. Notice also that the question
asks “why” policies have been adopted: here your paper should discuss economic issues
(mainly market failure), rather than motives stemming from purely political motives.
Where possible, link the “why” with the “how” to improve the coherence of your
presentation.
While the first part of your paper will include patents for inventions, coverage
should be brief, leaving the detailed assessment until the second part. In analysing the
strengths/weaknesses of patents, first confirm precisely what they typically set out to
achieve. Also, in your discussion acknowledge that differences in the implementation
of patent practices (including international aspects) can impact on their effectiveness,
and how they affect economic development. While you may choose to conclude by
taking a view in favour or against patent policies, this is not really necessary: what
matters (for the standard of your paper) are achieving a sense of balance and the
justification offered for whichever conclusion you reach. (The main goal is
explanation, not advocacy of any view, whatever it may be.)
You should expect to devote about 30% to 40% of your paper to the second part
and illustrate throughout with examples the points you are seeking to make.
Getting started references (details on EC203 Reading List):
Bruland, K. & D. C. Mowery “Technology and the Spread of Capitalism”, in L. Neal &
J. Williamson (eds.) The Cambridge History of Capitalism, vol. II, 2014,
pp. 82-126.
Moser, P. “Patents and Innovation: Evidence from Economic History”, Journal of
Economic Perspectives, vol. 27, no. 1, 2013, pp. 23–44.
EC203-6-SP: If you are a third year student answer ONE of the following questions in a term
paper of at most 3,000 words.
1. Identify the main advances in the understanding of electricity and associated
innovations during the 19th century. Hence analyse the role of economic forces in
determining the subsequent pattern and pace of innovations that were reliant on
electricity in the first half of the 20th century.
Guidance:
While covering the same subject matter as the level 5 question, level 6 essays should
analyse in greater depth the economic forces at work in determining the various
applications of electricity that were introduced, the pitfalls that were sometimes
encountered and the pattern of changes over time.
2. Analyse the role of economic forces in accounting for how and why governments in
capitalist societies have sought to influence innovation since the mid-19th century. In
this context assess the strengths and weaknesses of patents in influencing the incentives
for invention.
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Guidance:
See the guidance for level 5 essays. At level 6, it is expected that papers will
demonstrate a greater depth if understanding in the relationship between the motives for
adopting various policies and the policies that have been adopted, together with their
effectiveness (or otherwise). Similarly, in the evaluation of patent policies, more
explicit attention should be devoted to the analysis of the incentives of innovators and
how these may affect the outcomes observed.